7 Key Tips for Obtaining an Encumbrance Certificate

7 Key Tips for Obtaining an Encumbrance Certificate

Despite being such an important document, many land buyers and sellers often overlook or misunderstand the process of obtaining an EC. In this blog, we’ll explore seven key tips to help you obtain an Encumbrance Certificate smoothly and understand why it’s a crucial step in every land transaction.

What Is an Encumbrance Certificate?

The EC is needed in a number of instances — when purchasing or selling land, seeking a property loan, or proving ownership of land. In the absence of it, a purchaser may end up acquiring a property that could still be indebted or surrounded by court cases.

Why Does an Encumbrance Certificate Matters?

For anyone involved in the buy and sell land process, the EC serves as a safety net. It ensures that the property you’re investing in has a clean history and that ownership can be transferred legally.

Banks and financial institutions also rely heavily on this certificate before approving loans. In short, it helps you make informed decisions and avoid potential future complications.

7 Key Tips for Obtaining an Encumbrance Certificate

1. Collect the Right Property Details

Before applying for an EC, make sure you have the correct property information. This includes:

  • Survey number or property identification number
  • Full address of the property
  • Name of the current and previous owners

Any mismatch in details can lead to errors or delays. Always double-check this information against your sale deed or title deed before applying.

2. Apply at the Sub-Registrar’s Office

The Sub-Registrar’s Office (SRO) where the property was registered is responsible for issuing the Encumbrance Certificate. You can visit the office in person, fill out the application form (Form 22 in most states), and pay a nominal fee.

In recent years, many states have made this process partially or fully online, allowing property owners to apply for an EC from anywhere.

3. Use State Land Record Portals

Today, most Indian states have digitized their land record systems. Through these portals, you can apply for an EC, check land ownership history, and track your application status online.

4. Choose the Correct Time Frame

When applying for an EC, you must specify the time period for which you want the record. Typically, buyers request the certificate for the past 12 to 30 years to ensure a comprehensive ownership check.

A shorter time frame might not capture older transactions, which can lead to incomplete verification. Always opt for a longer period, especially when dealing with inherited or resale land.

5. Understand the Two EC Types: Form 15 & Form 16

The Encumbrance Certificate is issued in two formats:

  • Form 15: Issued when the property has registered transactions like sales, mortgages, or loans during the chosen time period.
  • Form 16: Issued when no encumbrances or transactions are found.

Understanding this difference helps you interpret the certificate correctly and ensures that your land is truly free from liabilities.

6. Verify the EC Thoroughly After Receiving It

7. Keep a Digital Copy for Future Use

Always save a digital copy of your Encumbrance Certificate. Whether you plan to sell the land in the future or use it to apply for a loan, having an easily accessible copy can save valuable time and effort.

How Technology Is Simplifying the Land Buying Process?

Rather than taking days to visit several offices, customers can now trust online resources that provide transparency and convenience to the process of investing in land.

Final Thoughts

One of the most important aspects of a hassle-free and safe land transaction is getting an Encumbrance Certificate. You are either going to purchase farmland, a plot close to a city, or coastal land, and checking that the land does not have any encumbrances is not negotiable.

By executing these seven essential tips, you can steer clear of unnecessary troubles and keep your investment safe. Using reputable online resources and reliable information websites such as 2Bigha can further make your investigation easy and enable you to make informed, confident choices when purchasing or selling land.

Land is perhaps the greatest asset you can possess — and knowing each step of the way, beginning with the Encumbrance Certificate, is the best method to secure your investment.